There are several stages in real estate development. They include pre-development, ground-up development, renovation, and government regulation. The process is unique to each phase, and it is important to know your options before deciding on a development project. There are also a number of government regulations to consider, including those for financing, zoning, and taxation.
Pre-development is a critical step before breaking ground on a new project. This step involves securing the necessary permits and approvals to begin construction. Getting approval for a project from local governments can be a lengthy and complicated process. This is because local governments’ attitudes and perceptions of new developments can impact the project’s chance for approval. A developer will want to know exactly what the community’s reaction will be before investing in pre-development.
The most important part of pre-development for a New York real estate development is the planning process. This includes analyzing the land, environmental characteristics, and allowable adjustments. Zoning restrictions, building height, and square footage will influence the feasibility and cost of a new development. If a new development requires rezoning, there may be other restrictions. For example, some neighborhoods have restrictions on the size of new apartments, which can limit the Bill Bhangal square footage of new developments.
A ground-up real estate development involves the construction of a property from scratch. This type of development is often more profitable than buying existing properties. This process can involve developing raw land or tearing down existing structures. It also involves a higher risk than other types of real estate development. In both cases, a development plan and expert team are vital.
The risk associated with ground-up real estate development projects is significant and the financing is usually complicated. Typically, investors need financing between 60 and 100% loan-to-value. They can obtain this financing through conventional and SBA loans, and through a joint venture arrangement. Syndicated real estate funds are also available to meet the needs of ground-up developers.
Renovations in real estate development include improving an existing structure. These renovations can improve the interior buildout and exterior finishes of the structure. For example, replacing a two-car garage with a game room can increase the value of the property. However, these improvements do not necessarily increase the price of the property.
In addition, renovations are less expensive than new construction, and they often do not require building permits. A renovation also allows you to access more desirable locations, while new construction may not. However, renovations do have their drawbacks. The biggest disadvantage is a decreased degree of flexibility, and there are some restrictions. For example, if you plan to renovate an existing building, you may not be able to expand it in the future.
In the beginning, government regulation of real estate development was intended to protect the public health and safety. For example, zoning ordinances were implemented to separate land uses that were incompatible and kept factories and homes from encroaching on neighboring properties. These regulations also established building height limits to protect against fire hazards and provide access to natural light and air.
Unfortunately, this approach failed and led to an unbalanced economy. Governments need to look at the real estate industry from a different angle. They need to make sure that their regulations promote a healthy, transparent and professional real estate industry, while leaving room for innovation and creativity. Currently, Dubai has a code of governance for real estate developers that puts the interests of the end users and investors first. Despite the success of their code of governance, the country is far behind the economies of over 40 countries.
Construction cost overruns are a major challenge faced by construction companies. The purpose of this study is to explore the influence of the Contracting Process on Construction Cost Overruns in real estate projects and to determine the extent to which it can reduce the overall costs. The study uses a combination of qualitative and quantitative methodologies, including descriptive survey and correlational research designs. Participants were 7 active real estate companies from Nairobi and Kisumu counties, as well as 10 key informants in the real estate industry.
Cost overruns are often the result of mistakes in estimation. In order to determine the real cost of a construction project, it is important to measure both initial construction costs and final completion costs. Many studies measure construction costs as underestimations while others use the difference between decision to build and contract award as the measurement point.